House endorses Labour Bill

Kathmandu, August 11

The Legislature-Parliament today passed the much-awaited Labour Bill tabled by the Ministry of Labour and Employment (MoLE), legally establishing the concept of ‘No Work, No Pay’ in the industrial sector.

However, the bill will come into force only after it is authenticated by President Bidhya Devi Bhandari.

The Labour Bill endorsed today has a provision where employers are not required to pay the employees for the duration in which production gets affected due to illegal protests and strikes within the company or industry. However, it allows employees to resort to strikes and sit-in programmes for their common demands and cause against employers, and employers should address them through bilateral dialogues with employees.

In case the bilateral negotiation is unable to resolve the contentious issues put forth by the employees, government can form a tribunal and solve it, as per the Labour Bill.

Similarly, the Labour Bill has also stated that employers should provide the minimum wage of Rs 9,700 for employees fixed by the government, should maintain uniformity in wages for works of similar nature and should guarantee social security to employees.

As per the Labour Bill, employers should also provide insurance for the employees to a certain extent.

The Labour Bill has also stated that employers should review wages of the staffers every two years within the first month of Nepali New Year (Baisakh). The Wage Fixation Committee comprising representatives of employers, labour unions and the government will review the wage on the basis of

inflation and other factors.

Likewise, the Labour Bill states that employers cannot delay employees’ salary by more than one month.

Shekhar Golchha, vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and also a private sector representative who closely worked with the government while formulating the draft of the Labour Bill, said the new bill will play a crucial role in establishing good labour relations in the country.

“The bill is friendly towards both the employees and employers as it has more or less incorporated the suggestions of both sides. Its enforcement will assure improved workplace relations between the company and its staffers,” said Golchha.